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China Mobile 5G experience area in Shanghai, China. Photo: Wang Yadong/VCG via Getty Images.

Federal Communications Commission chairman Ajit Pai is recommending, per executive branch agencies, that the FCC deny China Mobile's application to provide telecommunications services in the U.S. due to concerns about national security and law enforcement risks.

Why it matters: It's the first time executive branch agencies have recommended that the FCC deny such an application to interconnect with U.S. communications infrastructure, FCC officials said Wednesday on a call with reporters. The move represents a further escalation in the slow-building conflict between the U.S. and China over telecommunications trade.

The bigger picture: The Trump administration has already blocked Chinese telecom equipment maker Huawei from selling to American companies on national security grounds, driven largely by fears that China could use 5G network equipment to spy on Americans.

  • China is seen as the country to beat in deploying next-generation wireless infrastructure. Last week the FCC unveiled efforts to give the U.S. a leg up in the 5G race against China.

Details: China Mobile's application, submitted in 2011, requested permission to provide telecom services in the U.S., including connecting calls between the U.S. and the vast majority of countries, which would involve interconnecting with American internet networks.

  • FCC officials say China Mobile USA is indirectly and ultimately owned and controlled by the Chinese government. It's a subsidiary of global telecom giant China Mobile Limited.
  • U.S. officials saw risks that China Mobile would comply with government espionage requests or that information about U.S. communications networks and users could be exploited. There were also concerns that Chinese government officials could use its access to U.S. networks to block or interfere with communications traffic should an issue arise between the two countries.
  • After consultation with the intelligence community, executive branch agencies concluded those risks couldn't be resolved through a voluntary mitigation agreement.
  • Mitigation agreements require a baseline level of trust between parties, which does not exist in this case, per an FCC official.

What's next: The full commission will vote on Pai's recommendation at its May 9 meeting.

Go deeper

Danger lurks in the Democrats' police talk

House Speaker Nancy Pelosi and House Democrats celebrate last June after they passed the George Floyd Policing Act. Photo: Ting Shen/Xinhua via Getty Images

As Congress forges ahead with police reform legislation, Democratic operatives are warning lawmakers to steer clear of any defund-the-police rhetoric since it could hurt them in the midterms.

Why it matters: President Biden and his fellow Democrats say Congress needs to pass the George Floyd Policing Act, which would ban chokeholds, prohibit no-knock warrants and generally make it easier to hold officers accountable for misconduct.

Exclusive: Harris meets Guatemalan president Monday, travels in June

Photo: Jim Watson/AFP via Getty Images

Vice President Kamala Harris will meet virtually Monday with Guatemalan President Alejandro Giammattei to discuss solutions to the surge of migration, and she'll visit the region in June, a senior White House official told Axios.

Why it matters: The administration is taking a multi-pronged approach to solving the problem and also hopes to announce details about its plan for investing aid in Central America on Monday — although a final dollar amount has yet to be decided.

Scoop: Government pays for some sponsors to pick up migrant kids

MIgrant minors play soccer at a holding facility in Donna, Texas. Photo: Dario Lopez-Mills/AFP via Getty Images

The federal government has been paying travel costs for adult sponsors trying to get to shelters to pick up migrant children, a Department of Health and Human Services agency spokesperson confirmed to Axios.

Why it matters: Officials would not provide numbers, but the policy shift underscores the urgency the Biden administration feels to quickly release kids who crossed the U.S.-Mexico border alone and remain in HHS custody.